Ministry of Corporate Affairs has issued Notification dated June 5, 2015 by which it has provided various much awaited Exemptions to Private Companies other than the subsidiary of a public company a summary of such exemptions is as follows :-

S.No.

Exemption Given

Section

Major Impact

1.

DEFINITION OF RELATED PARTY RELAXED WITH RESPECT TO SECTION 188

Does not include Holding, Subsidiary, Associate Company and sister concern(subsidiary of holding)

2(76)

Transactions entered with them and falling under section 188 does not require compliance of section 188.

Note:- Although Holding company is excluded but Director(other than independent Director), KMP of holding company or their relative are still included in definition of Related Party. (Section 2(76)(ix))

2.

TIME LIMITS IN RIGHT ISSUE CAN BE REDUCED

Sending of offer letter min 3 days period before opening of offer

AND

Minimum & maximum offer period of 15 & 30 days respectively

Can be reduced, if 90% member give their consent in writing/electronic mode

62(1)(a) &62(2)

In case of emergency, the mentioned time limits an be reduced with consent of shareholders.

Note:- The time limits cannot be increased, they can only be reduced.

3.

ACCEPTANCE OF DEPOSITS FROM MEMBERS MADE EASIER FOR CERTAIN PRIVATE COMPANIES

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Gurminder Singh Dhami is a young, energetic Company Secretary with an eye for detail into the nuances of Corporate Law. A researcher at heart, he has written various articles on new Companies Act, 2013 and leads the Team in keeping abreast with the latest changes and supports in critically analyzingView Full Profile

In Point No. 11 you have mentioned that Body Corporate should be Shareholder (One of the Condition to get exemption u/s 185) but it should be other way round:

Exemption to private limited Company
1. in whose share capital no other body corporate has invested any money.
2. Not borrowed money from Bank/ Financial Institution/ Body Corporate exceeding lower of the following:-
i. Twice its Paid up capital
ii. Rs. 50 crore 3.
3.No repayment default subsisting of such borrowings at time of giving loan

The notification issued for exemptions are only in draft mode, which has to be approved by both the houses of Parliament under the provisions of section 462 (2) of Companies Act, 3013. As such, the Heading “13 exemptions to Private companies w.e.f.05.06.2015” may be reviewed, for correct information to the stakeholder.